Telecommunications Companies Underrate Strategic Role of Procurement

The procurement departments at many telco operators lack the necessary structures for them to play a major role in achieving company goals. This is the result of a recent study prepared by the ICT management consultancy Detecon International. While it finds that most companies have a comprehensive procurement strategy, 75% of them do not pursue the strategy in all parts of the corporate group and subsidiaries.


The study, entitled "Strategic Sourcing in the Telecommunications Industry", reveals that while telco operators see the necessity and potential of optimized and global purchasing processes in terms of cost reductions, encouragement of innovations, and risk management, they have not yet succeeded in implementing the permanently.


"This delay is more than just disadvantageous; it can lead to the development of very real business threats," warns Michael Hanke, Managing Partner at Detecon International and initiator of the study. "Purchasers should not stop with simple cost reductions; they should work together with suppliers to develop innovative products and services while at the same time building a stable early warning system for supply risks of all kinds. Ideally, the chief procurement officer will also act as an advisor for corporate strategy."





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